Post Pone FDI in retail for another five years


Prime Minister Dr. Singh,

Yesterday , I attended the meeting of CAIT ( Confederation of all India Traders ), I felt really bad seeing the plight of the traders, and the hell they would be subjected to , should FDI be allowed in India at this point .

Over the last few months, you have rallied all associated departments and ministries to build a case for FDI in retail. I feel sad that you & your government have ignored the fact , that FDI in retail at this juncture will put a big question mark on the means of livelihoods of over a Crore traders in the country .

I have seen that you / your government has been saying that inflation will come down as Wal-Mart , Carrefour , Tesco’s of the world come to India ( Wal-Mart has already come in few years ago ! ).

Prime Minister , remember, that Inflation has not come down despite Wal-Mart being in India . Your government’s logic that supply chain will get strengthened and prices will fall is fallacious . FDI in retail is a wrong justification for strengthening the supply chain , as FDI in supply chain is already allowed, and a lot of wholesalers are already around and more can come in without needing FDI – Why are you fooling around Manmohan ji ? How low will you stoop now to push to agenda of foreigners !!

Even those who are operating Cash & Carry business , are issuing cards to individuals to buy from them, thereby , stabbing the small retailers . Shut down Cash & Carry immediately after a proper investigation . I go to Sam’s Club in the US ( For your information , Sam’s Club is Wal-Mart’s Cash & Carry Venture in the US). Anyone can buy a card for USD 40 and start buying from Sam’s Club. I have gone twice with my friends to Sam’s club and brought goods from the store , my friends are not retailers , but Indian professionals working in the US . So when these retailers do the same in India , what will we do ???

Your government has failed to understand the cause of inflation , and firstly , you said that recession caused inflation ; then recession got over but inflation did not come down. Then you said that irregular and deficient rainfalls are the cause of inflation. Last year , we had good rains and inflation still did not come down. Realizing that there was no answer with your US educated ( read brain washed ) consultants ( Rajan ,Montek, Kaushik & Sam ) , your government said that inflation was due to high growth and it would continue . Study our next door neighbor – China . They have had high growth with less than 5 % inflation !! All your predictions have failed !!

Also remember dear economist, that ‘inflation is reversible but FDI is not’ . What I mean to say is that , when BJP comes to power, it will bring down inflation , but if you permit FDI ( As your government is hell bent on it ) , we will not be able to reverse FDI . So think before -hand !! Don’t jump like the nuclear deal & do another fiasco !!

Sonia Ji is shouting aloud on NAC podium for poor people on one side, and on the other side , both of you have already done a deal with major international retailers , and are hell bent on cracking the back bone of small retailers by allowing FDI

Government has a flawed policy with regards to FDI, as you are saying that you will allow FDI in top 35 towns to start with. This goes contrary to strengthening the supply chain. If you really want to strengthen the supply chain then please ask this big giants to start retail in ‘C’ class towns and then come to B & A class towns !!

Your statement that farmers will get better value because of FDI in retail : Wal-Mart’s of the world are known for extracting even the ‘blood’ of suppliers !! Their labor policy record needs to be closely examined , and how many times they have been fined !

Also, Wal-Mart is failure in Japan ( social dumping & doubts about its quality ) , Korea ( Wal– Mart failed to understand local customers) , Brazil ( Lack of understanding about local culture ) & Germany ( due to cultural insensitivity ) .

I am producing an excerpt from a report

‘Walmartization does not travel well’ Clearly, neither Wal-Mart’s business concept nor its social dumping – the so-called Walmartization – work in developed economies with a social dimension. Many consumers shun the Bentonville giant and prefer to do their shopping in stores where they know that workers are treated correctly and with dignity. There is also more and more uneasiness and suspicion about many of the products sold. Squeezing the last drop from suppliers can hardly promote safety and quality. There is also a growing aversion against buying, consuming and using products which could well have been made under inhuman conditions. That the tide is fast turning against Wal-Mart at home has not gone unnoticed abroad. Consumers start to know that the retail giant denies its American workers their fundamental rights, and many of them vote with their legs, going to other stores if they have a choice. The poor business results in Germany, Korea and Japan should be taken seriously in Bentonville

Another report : This article appears in the November 21, 2003 issue of Executive Intelligence Review. Wal-Mart Collapses U.S. Cities and Towns by Richard Freeman

During the last 20 years, Wal-Mart has moved into communities and destroyed them, wiping out stores, slashing the tax base, and turning downtown areas into ghost-towns. This is accomplished through Wal-Mart’s policy of paying workers below subsistence wages, and importing goods that have been produced under slave-labor conditions overseas. Often, communities will even give Wal-Mart tax incentives, for the right to be destroyed. Wal-Mart both reflects, and is, a major driving force for America’s deadly implementation of the Imperial Rome model. Unable to produce physical goods to sustain its own existence, the United States, like Rome, sucks in imported goods from around the world, using, in this case, a dollar that is over-valued by 50-60%. America has been transformed from a producer to a consumer society.

I believe that Wal-Mart destroyed American Economy and now it is here to kill ours !! Also, since we know that Wal-Mart is a failure in four countries , please produce a report on those four countries .

Also, let us examine that how many small mom & pop stores have shut down with the advent of Wal-Mart in the United States ? Similar study we must do in China .

Let me also tell you why Biyani’s & Ambani’s of the world are wanting FDI ?

Let me ask these retailers one question ? If the retail trade is so good and profitable , why they have the problem in raising money , investing and growing their business – why do they need foreign investment ? The talk that these MNC retailers bring latest technology is also misleading , as Indian retailers are working in a different environment and all foreign CEO’s have been an utter failure so far in India . You can see the example of Reliance Retail ; How many CEO’s have been brought from outside India in the last four years ? I understand that recently a new CEO was hired from Wal-Mart China !! These traders are actually looking at exiting the business by selling their business to these multinationals to make a quick buck !! That’s the real reason they need FDI .

Once FDI comes , farmers will cry for a good deal and Wal-Mart would never give them a fair deal . On one side , farmers are forced to sell land and other side whatever is left with land & cultivation , they would be forced to sell to these MNC chains at a wafer thin margin .

Congress is a killer party for the poor !! Prime Minister Singh , where is your plan to upgrade the current Kirana stores ? Why are you not excited with their welfare . Give them FDI ( Finance from domestic institutions ) , and provide them training .

I call upon Shri Nitin Gadkari , President BJP to stand behind these standalone Kirana store and oppose FDI . We should post pone FDI for another five years and then revisit the issue. A massive peaceful agitation is called for to stop FDI in Retail for the next five years .

Mail is marked to Montek, Raj Jain of Wal-Mart , CAIT and all leading retailers & political parties in India

A Common Man

Rajendra Pratap Gupta

http://www.rajendragupta.wordpress.com

Lame duck PM ? Not at all, a duck cannot fly but at least ruffles its feathers to keep afloat


Dear Dr. Singh ,

I read your statement made at the press conference today, that you are not a Lame duck PM. Well, Lame Duck is too generous a word to describe you !! A lame duck will at least ruffle its feathers , you don’t even do that !!

Let me walk you through your years as a PM. What have you done to this nation ?

Share market collapsed

Oil Prices have hit through the pocket of the common man and he is struggling to make two ends meet

You defended CWG and created a massive scam of the games

There was a wheat export scam ………….

You defended A. Raja and gave him a clean chit , and finally created scam out of telecom airwaves auctions which is so far the biggest in history

Finance minister’s office was under the influence of spies and you did nothing compromising heavily with the security of the nation

Somali pirates are operating on our border

Fiscal deficit has not been addressed

Your ministers have no understanding of the collective responsibility and your party and government speaks different language

NAC is operating as a super body and the office of the PM has been denigrated to its lowest level since independence

You blamed inflation on poor rain , then recession and finally on growth !! Do you think that the opposition and public does not know economics and politics ??

You are pushing for FDI in retail , which will create mass social unrest in the country and will be the biggest mistake for this nation , as it will endanger the livelihoods of over 12 million families directly, and more indirectly .

For inflation , your government has been giving deadlines to control it every 2-3 months , and missing it every time . The Reserve Bank of India’s (RBI) original inflation estimate for fiscal 2011, made in April 2010, was 5.5%. After two revisions, the latest being in March, it was raised to 8%.The annual average inflation figure for fiscal 2011 now works out to 9.43%, the highest since 1995, and it could be even higher when provisional figures of February and March are revised. You are clueless about measures to control inflation , as Chidambaram once expressed .

A government in power , if it makes statements and repeatedly fail , you are misrepresenting the facts and misleading the nation . It calls for a serious action against the government & its leadership

Now let’s talk of the biggest deal of your lifetime – Nuclear deal : Here is the truth : There is no blanket waiver from NSG.

During the more than three-year-long process to finalize the terms of the nuclear deal with the US, you kept meretriciously reassuring the nation that he would operationalize the deal only after securing a broad political consensus in support. you even pledged: “Once the process is over, I will bring it before Parliament and abide by the House.” Yet, you completely bypassed Parliament. And instead of any attempt at consensus building, the country witnessed a polarizing single-mindedness to clinch the deal at any cost.

Now, with several of your key assurances to the nation falling by the wayside, the nuclear chickens have come home to roost. The Nuclear Suppliers Group’s (NSG’s) new ban on enrichment and reprocessing (ENR) equipment transfers fulfils one of the last remaining conditions of US’ Hyde Act, highlighting the rising costs for India of a deal whose much-trumpeted benefits are likely to remain elusive. India also has ended up without a legally binding fuel supply guarantee, despite its bitter experience over the US-built Tarapur plant. And it has secured no right to take corrective measures even if the US  again  unilaterally terminates cooperation, as did in the 1970s.

That NSG granted India a clean, unrestricted waiver in 2008 is a myth the politically besieged government created to save face in public. In truth, it had signaled to the US earlier that it could live with a conditional waiver as long as the conditions were not embarrassingly conspicuous. Indian diplomacy sought to ensure that prohibitions on nuclear testing and ENR transfers remained implicit, or else you would stand exposed at home……..So Dr. Singh , what are you going to say now?

Mr. Manmohan Singh , you have cheated the nation on every issue , and you had the audacity to say today in the press meet that Sonia Gandhi is the Super president for over 15 years ? Actually , she has been the super Prime Minister ! Sonia has brought down congress to its knees, and now this selfish lady is  gambling by sending her son , a political novice with Gandhi brand as a fake youth icon to win UP & 2014 Elections !! Sonia needs to understand India a little better .

As a Congress President, she has brought this 125 year old party to its lowest ebb. PM , you have fooled the nation that you drove the reform in 1980’s, it was actually P.V.Narasimha Rao and not you. So actually , your performance speaks for itself .

Your own General Secretary have no faith in your leadership and are so frustrated with your performance and leadership that they are proposing Rahul as PM , When he has not even managed a state , leave along managing a nation !

Your government has crushed unarmed people in cold blood and talks about checking corruption ?? These common men were just making a demand in a Gandhian style seeking action against corruption. Manmohan ji , you have even dumped the Gandhian philosophy. I would have addressed you as PM – Gen. Dyer ………….hope you remember the Jallianwallah Bagh !! You did the same on 4th June .

Your government has growth without development and job creation . You just could create 400,000 jobs every year , and the NDA government created 12 million jobs every year !! Who did better ??

Do you understand the 30 times more job creation makes for a better economy !!

Lastly, had the supreme court not intervened , the public outcry would have spread like wild-fire and transformed into a civil rebellion ? You are a totally failed Prime Minister, who has brought the nation to disgrace and let down the Indians in the global arena .

India is today perceived as a grossly corrupt nation . Thanks to your ‘I don’t know attitude – Mr. Lame Duck PM’ A common man is being let down miserably , and ashamed of the fact that an educated person like you did not make great political Leader and stooped low to please the Super PM – Sonia Gandhi !!

A Common Man

Rajendra Pratap Gupta

http://www.rajendragupta.wordpress.com